Business Law and the Legal

Environment 21st Edition Twomey Test

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Chapter 8—CRIMES

TRUE/FALSE

1. Crimes and criminal punishment guidelines are specified in detailed criminal codes and statutes.

ANS: T MSC: AACSB Analytic

2. The criminal law of all states is the same because all states have adopted a uniform criminal code.

ANS: F MSC: AACSB Analytic

3. Generally, misdemeanors are more serious than felonies.

ANS: F MSC: AACSB Analytic

4. An act that is a felony in one state will necessarily be a felony in another.

ANS: F MSC: AACSB Analytic

5. A crime consists of three elements: the mental state, the intent, and the act.

ANS: F MSC: AACSB Analytic

6. For an act to be considered a crime, it is necessary that some person be harmed.

ANS: F MSC: AACSB Analytic

7. "Mental state" does not require an awareness of guilt.

ANS: T MSC: AACSB Analytic

8. A person may be held criminally liable for acts committed by another.

ANS: T MSC: AACSB Analytic

9. For business crimes, managers cannot be held criminally responsible for the conduct of their
employees.

ANS: F MSC: AACSB Analytic

10. Because a corporation is not a human being, it cannot be convicted of a crime.

ANS: F MSC: AACSB Analytic

11. Several states have adopted statutes providing a limited degree of indemnification to victims of crime.

ANS: T MSC: AACSB Analytic

12. An innocent person convicted of a crime is never able to receive compensation for the wrong.

ANS: F MSC: AACSB Analytic

13. White-collar crimes generally involve violence.

ANS: F MSC: AACSB Analytic

14. RICO authorizes both criminal and civil actions.

ANS: T MSC: AACSB Analytic

15. RICO was designed primarily to prevent individuals involved in organized crime from investing
money obtained through racketeering in legitimate businesses.

ANS: T MSC: AACSB Analytic

16. Bribery requires the use of violence.

ANS: F MSC: AACSB Analytic

17. Extortion and blackmail are exactly the same.

ANS: F MSC: AACSB Analytic

18. The Foreign Corrupt Practices Act applies to businesses with their principal offices located in the
United States.

ANS: T MSC: AACSB Analytic

19. The Foreign Corrupt Practices Act does not prohibit facilitation payments.

ANS: T MSC: AACSB Analytic

20. Forgery includes signing another person's name to a check with the intent to defraud.

ANS: T MSC: AACSB Analytic

21. The issuing or delivery of a forged instrument to another person constitutes the crime of counterfeiting
a forged instrument.

ANS: F MSC: AACSB Analytic

22. Embezzlement involves fraud.

ANS: T MSC: AACSB Analytic

23. Embezzlement always involves a bank account.

ANS: F MSC: AACSB Analytic

24. Larceny is best defined as the taking of personal property from the presence of the victim by the use of
force or fear.

ANS: F MSC: AACSB Analytic

 25. A computer crime generally can only be committed by a person having some knowledge of the
operation of a computer.

ANS: T MSC: AACSB Analytic

26. Destroying information stored on a computer may be a crime.

ANS: T MSC: AACSB Analytic

27. Economic espionage is against the law.

ANS: T MSC: AACSB Analytic

28. The Fourth Amendment warrant requirement does not apply to businesses.

ANS: F MSC: AACSB Analytic

29. Corporations are entitled to Fifth Amendment protection.

ANS: F MSC: AACSB Analytic

30. Due process includes the right to be heard, question witnesses, and present evidence.

ANS: T MSC: AACSB Analytic

MULTIPLE CHOICE

1. Crimes are generally defined and their punishments specified by:

a. trial court judges.
b. appellate judges.
c. codes and statutes.
d. the United States Constitution.
ANS: C MSC: AACSB Analytic

2. Criminal laws:
a. vary from state to state.
b. are the same from state to state, except in the area of computer crimes.
c. are the same from state to state, except in the area of white-collar crimes.
d. none of the above.
ANS: A MSC: AACSB Analytic

3. Which of the following statements is true?

a. Felonies are less serious than misdemeanors.
b. Felonies involve white-collar crimes only.
c. Felonies are more serious than misdemeanors.
d. Felonies are federal crimes only.
ANS: C MSC: AACSB Analytic

4. Which of the following is generally considered a felony?

a. reckless driving.
b. disturbing the peace.
 c. robbery.
d. none of the above.
ANS: C MSC: AACSB Analytic

5. A crime generally consists of:

a. an act.
b. an act or omission.
c. a mental state and an act or omission.
d. a mental state and harm.
ANS: C MSC: AACSB Analytic

6. A person who did not necessarily commit the crime can still be held criminally responsible for acts
committed by others __________.
a. only for crimes committed outside the United States.
b. only when the person who actually committed the crime is a supervisor.
c. only when the crime committed is a white-collar crime.
d. none of the above.
ANS: D MSC: AACSB Analytic

7. When a defendant is convicted of a crime, the court may also declare that the defendant’s rights in any
property used or gained from the crime be confiscated. This is known as __________.
a. forfeiture
b. reversion
c. subversion
d. divestiture
ANS: A MSC: AACSB Analytic

8. Crime victims:
a. cannot ever receive indemnification.
b. can receive indemnification if it is provided for by statute.
c. can receive indemnification, but only for misdemeanors.
d. can receive indemnification, but only from state governments.
ANS: B MSC: AACSB Analytic

9. An innocent person who is unjustly convicted of a crime may:

a. never receive indemnification.
b. receive indemnification, but only for the time spent awaiting trial.
c. receive indemnification.
d. none of the above.
ANS: C MSC: AACSB Analytic

10. White-collar crimes:

a. always involve the threat or use of force or violence.
b. generally involve the threat or use of force or violence.
c. sometimes involve the threat or use of force or violence.
d. do not involve the threat or use of force or violence.
ANS: D MSC: AACSB Analytic

11. Conspiracy means ____ committing a criminal act.

 a. thinking about
b. an agreement aimed at
c. thinking with others about
d. all of the above
ANS: B MSC: AACSB Analytic

12. Money __________ involves the knowing and willful participation in a financial transaction involving
unlawful proceeds when the transaction is designed to conceal or disguise the source of the funds.
a. ironing
b. vacuuming
c. laundering
d. cooking
ANS: C MSC: AACSB Analytic

13. RICO is a product of:

a. Congress.
b. international trade agreements.
c. state law.
d. none of the above.
ANS: A MSC: AACSB Analytic

14. Racketeering is defined as:

a. using money to influence public officials.
b. using money to influence employees of competitors.
c. using money derived from illegal activities to invest in legitimate businesses.
d. using money to influence foreign officials.
ANS: C MSC: AACSB Analytic

15. Bribery is defined as:

a. giving money, property, or any benefit to a person to influence that person's judgment.
b. using one’s position as a public official to make an illegal demand.
c. using one’s position as a nonpublic official to make an illegal demand.
d. exerting improper political influence.
ANS: A MSC: AACSB Analytic

16. Blackmail is defined as:

a. giving money to a person to influence that person's judgment.
b. an illegal demand made by a public official.
c. an illegal demand made by a nonpublic official.
d. providing improper political influence.
ANS: C MSC: AACSB Analytic

17. Which of the following statements regarding the Foreign Corrupt Practices Act is true?
a. It applies only to foreign officials in this country.
b. It applies only to foreign officials outside this country.
c. It applies only to "grease" payments.
d. None of the above statements is true.
ANS: D MSC: AACSB Analytic
18. Counterfeiting is:
a. a federal crime only.
b. a state crime only.
c. both a federal and state crime.
d. none of the above.
ANS: C MSC: AACSB Analytic

19. Perjury occurs:

a. only in court.
b. only in written form.
c. only in state courts.
d. none of the above.
ANS: D MSC: AACSB Analytic

20. A computer crime generally requires that:

a. the criminal possess a computer.
b. the victim possess a computer.
c. the criminal have some knowledge of computers.
d. the victim have some knowledge of computers.
ANS: C MSC: AACSB Analytic

21. Computer crimes include:

a. theft of hardware.
b. theft of software.
c. intentional damage to information stored on a computer.
d. all of the above.
ANS: D MSC: AACSB Analytic

22. The unauthorized use of a computer belonging to someone else is:

a. a crime in all states.
b. a crime in some states.
c. not a crime in any state.
d. a crime under federal law only.
ANS: B MSC: AACSB Analytic

23. The Fourth Amendment to the United States Constitution’s protection against unreasonable searches
applies to:
a. personal homes only.
b. businesses only.
c. both homes and businesses.
d. none of the above.
ANS: C MSC: AACSB Analytic

24. The Fifth Amendment to the United States Constitution’s protection against self-incrimination applies
to:
a. individuals only.
b. corporations only.
c. both individuals and corporations.
d. individuals, but only in their official capacity within a business.
 ANS: A MSC: AACSB Analytic

25. Due process rights apply to:

a. individuals only.
b. corporations only.
c. both individuals and corporations.
d. individuals, but only in their official capacity within a business.
ANS: C MSC: AACSB Analytic

CASE

1. James Smith, a health inspector for the state of Missouri, inspected a restaurant owned by Salley Slick.
Smith found numerous health violations in the restaurant and fined Slick accordingly. When Smith
notified Slick of the infractions, Smith strongly suggested that $5,000 "would sure prove handy in the
Spring" when he planned to purchase a new fishing boat. Slick understood Smith's obvious hint and
offered Smith $5,000 if he would lose the paperwork concerning the failure of the restaurant to meet
proper inspection guidelines. Smith accepted the $5,000 and lost the paperwork. One month later,
Smith returned to the restaurant and told Slick that he would reappear every month and find violations
unless Slick produced $1,000 each month to go toward the purchase of a fleet for Smith. Slick agreed
to make the $1,000 payments. What crimes have been committed by Smith and Slick?

ANS:
Bribery occurs when a person's judgment is influenced through the giving of something of value, such
as money, to benefit the giver. Smith is guilty of soliciting a bribe and of bribery itself. Smith sought
to obtain a bribe and this constituted the crime of bribery solicitation. When the money came forth and
was accepted, the crime of receiving a bribe occurred. When additional sums of money were
requested, based solely on the request and no actual violations, the crime of extortion (blackmail) was
committed. Acting on his authority as a health inspector, Smith is threatening action not based on
violations, but rather by greed.

Slick is guilty of bribery of a public official to escape the payment of fines and damage to reputation
that are the results of health code violations.

MSC: AACSB Reflective Thinking | AACSB Analytic

2. Sally operates a large manufacturing firm near a federal land preserve known for its waterfowl and
fauna. The federal government has just filed suit against Sally and her corporation, charging them with
criminal violations of various environmental protection statutes. What rights do Sally and her
corporation have that are guaranteed under the United States Constitution?

ANS:
The Fourth Amendment requirement that a search warrant be issued before any search is conducted
applies both to Sally's property and to that of the corporation. The Fifth Amendment right against self-
incrimination applies to Sally, but not the corporation. Further, both Sally and the business
organization are entitled to due process.

MSC: AACSB Reflective Thinking | AACSB Analytic